The following accounts appear in the ledger of Tanaka Limited, which uses IFRS, and has adopted the policy of classifying dividends paid as operating activities:

Instructions
Show how the information posted in the accounts is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of machinery (November 15) was $5,800.

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Retained Earnings Credit balance Dividends (cash) Net income for 2014 Dr. Cr. Hal Jan. 1, 2014 Aug. 15 Dec. 31 $42,000 27,000 67,000 $15,000 $40,000 Machinery Debit balance Purchase of machinery Cost of machinery constructed Machinery sold Cr. Hal an. 1, 2014 Aug. 3 Sept. 10 Nov. 15 $140,000 202,000 250,000 194,000 $62,000 48,000 $56,000 Accumulated Depreciation Machinery Credit balance Accumulated depreciation on Hal 58,800 75,600 Itr. Cr. Jan. 1, 2014 Nov. 15 25,200 machinery sold Depreciation for 2014 Dec. 31 $16,800